Blanket Mortgage

[Eugine]

A blanket mortgage is a loan used to finance the purchase of two or more pieces of real estate. The distinguishing feature of the blanket mortgage is the “partial release clause." The clause differentiates the blanket mortgage from the traditional mortgage because it gives the borrower the flexibility to make a partial repayment of the loan when a piece of the secured property is sold. A traditional mortgage generally contains a “due on sale clause” and requires payment in full when the secured property is sold.